Exponential Potential has created the Align for Value3 TM Framework to enable businesses, individuals, and government entities to maximize all parties’ performance while enriching the entire Economic Ecosystem. Thus creating more customers, more employees, and sustainable shareholder value growth due to increased demand.
The Value3TM Framework starts by analyzing the value performance of organizations direct offerings, organizational processes and practices, and recognition approach or the Value1TM Framework. Companies can obtain a much clearer picture of the health of their enterprises especially in the medium to longer term by evaluating their products and services in the context of value.
Most businesses have strategically designed and maintained a transactional “product” or “productized service offering” approach in order to drive profitability, reduce delivery variability, and to narrow accountability. In many cases this approach has made it easier to misrepresent and manipulate offers, accelerate revenue recognition, and transfer outcome accountability to clients and society. In a vast majority of instances, the impact of this approach has required tremendous operational investments, enormous extended enterprise coordination, and added significant risk ultimately delivering devastating results for customers, shareholders, and society. The Align for Value1TM Framework enables organizations to gain significant competitive advantage by changing their approach to an intense commitment to deliver differentiated value to their customers, shareholders, and society.
Value Contribution ComponentsTM is a complete accounting of the value make up of a product or service to determine the key value components and how value is created and delivered by each component. The analysis includes current and potential future competitive offerings and services attributes.
Comprehensive Value ScoreTM provides a positive or negative value score for products and services from several viewpoints including; expectations, dependencies, investment and resources required, important interrelationships, risks, time, and actual outcomes. In recent years companies products and services have routinely delivered negative value scores over shorter and shorter time frames. There is a significant link between low or negative comprehensive value scores and catastrophic performance failure.
Core Value RatioTM performance is a framework for understanding and focusing on the “core value” creating contribution elements in a company’s products and services offerings. Recent market and business model evolution have greatly reduced the core value ratio delivered by most products and services. Companies can reverse years of business model evolution that has greatly diminished core value and led to risk catastrophic performance failure in the form of lost business, competitive displacement, and devastating operational events. Companies that focus on growing the core value ratio of their products and services will gain a sustainable competitive advantage.
Value Trend TM performance analyzes the value trending of a company’s products and services over time to help understand the trajectory and rate of performance improvement or degradation. In addition, root causes for the performance our evaluated in the context of that trend line.
Value ShareTM looks at the relationship between the incremental and innovation path for offerings that will deliver the optimal impact on clients, shareholders, and the broader stakeholder community and the share of benefits each party will receive as a result. In many cases the extraction oriented practices of companies creates increase revenue, profits, and margins for a company and shareholders in the short term, but at the expense of the client, shareholders, employees, the broader stakeholder community, and ultimately the company in the medium to longer term. Over time those decisions typically lead to significant performance events if not catastrophic collapses. Applying the Value Share methodology can assist in ensuring improvements are aligned with core value for primary stakeholders and does not risk the medium to longer term performance or future existence of the enterprise.
Quality performance is analyzed in the context of value to determine if there is any correlation between quality principles or the lack of and performance barriers and challenges. There is significant evidence to suggest a lack of commitment to quality and an over orientation to low price, manipulation, one-sided efficiency gains, and strategically abdicated accountability are pervasive in the market today. Many of the performance risks and challenges today can be substantially mitigated with a commitment to prioritizing quality and total cost frameworks over the evasive self-serving tactics outlined above.
Loyalty, Retention, Advocacy, and Relationship Profitability are analyzed to clearly establish links between value and market performance from the perspective of products, services, transactions, relationships, and client outcomes over time. Current and future potential competitive threats and operational risks are considered to stress test go forward methods and practices given the limited competition in the marketplace today.
Offering focused value analysis provides critical clues on where to look for misaligned resource allocation, investments, and expenditures that have contributed to the evolution of our existing warped business models. Companies can utilize Align for Value1TM Framework to gain a fresh perspective regarding the value of their products and services. Perspectives that can be leveraged to deliver more meaningful customer outcomes, improve resource leverage, and sustained shareholder performance. Most importantly they can understand the impact of true value management in assuring the future health of their company’s.